There are several good main reasons why it makes ample sense to register your company. The first basic reason is to safeguard One Person Company Registration in India online‘s own interests and not risk personal assets to the stage that facing bankruptcy in case your business faces an emergency and and that is forced to close down. Secondly, it is easier to attract VC funding as VCs are assured of protection if this company is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited firm. (These are terms which have been described later on). Another valid reason is, any time a limited company, if wishes managed their shares to another it’s easier when an additional is authorized.
Very almost always there is a dilemma as to when the company should be registered. The solution to which is, primarily, in case business idea is good enough to be converted into a profitable business or truly. And if the answer to and also confident properly resounding yes, then it’s the perfect time for in order to go ahead and register the start-up. And as mentioned earlier on it is often beneficial to write it as a preventive measure, before damaging saddled with liabilities.
Depending upon the type and size of the actual and when there is want to be expanded it, your startup can be registered as one of the many legal formats of the structure in a company on the market.
So i want to first educate you with needed information. The different company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by only individual. No registration is needed. This is the method to if you must do it yourself and the purpose of establishing firm is obtain a short-term goal. But this puts you at risk of losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or even more than two individuals. In the event of a Partnership firm, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a involving trust concerning the partners. But similar together with proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) OPC is single Person Company in which the company is really a separate legal entity which in effect protects the owner from being personally to blame for any cutbacks.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the best of partnership firm and a company and the partners are not personally liable to lose their personal wide range.
e) Limited Company which is of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there is no upper limit; the connected with directors end up being at least 3 and
ii) Private Limited Company where minimal number of folks that needed are 7 by using a maximum maximum of 150. The number of directors must be 2.